Gerdau sees net profit decline in Q1

Gerdau sees net profit decline in Q1

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Brazilian integrated steelmaker Gerdau saw its net profit in Q1 decline 51.3 percent, year-on-year, to BRL 221 million ($38.7 million), the company said on Wednesday while releasing its quarterly results.

The company said net revenues in Q1 fell 8 percent, year-on-year, to BRL 9.22 billion ($1.61 billion).

Steel production in Q1 was 3.18 million mt, 4.6 percent down, year-on-year. Steel sales volumes in Q1 totaled 2.69 million mt, 9.8 percent down, year-on-year.

Gerdau reported a gross profit of BRL 855 million ($149.7 million) in Q1 this year, 32.6 percent down, year-on-year. Gross margin fell to 9.3 percent in Q1 from 12.7 percent in Q1 2019.

Gerdau said adjusted EBITDA in Q1 totaled BRL 1.17 billion ($206.1 million), 24.5 percent down, year-on-year. Adjusted EBITDA margin in Q1 decreased to 12.8 percent, from 15.5 percent in Q1 2019.

USD = BRL 5.71 (May 6)

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